QQQ - Why AI Stocks Could Go Boom
2024-04-22 14:21:11 ET
Summary
- The S&P 500 Index is experiencing a correction, with a potential 10% pullback to around the 4,800 level. Yet, the bottom is likely near.
- High-quality AI-related stocks have corrected significantly, providing a buying opportunity for the next move higher.
- The Fed will likely cut rates soon, which is a constructive dynamic for stocks and other risk assets.
- Despite the possibility for more near term volatility, I am keeping my year-end SPX target in the 5,700-6,000 range.
The correction we've discussed recently has finally materialized and may be gathering more steam. In my "prophet report" on April 2nd, I said :
Why AI Stocks Could Go Boom"In my view, there are several possibilities for a possible correction. The S&P500/SPX ( SP500 ) could experience a 5% pullback to around 5,000 in a base-case scenario and roughly a 10% correction to the 4,700-4,800 zone in a worse-case outcome."